DoD awards $22.9M contract for Longbow Apache aircraft components to McDonnell Douglas Helicopter Company

Contract Overview

Contract Amount: $22,908,175 ($22.9M)

Contractor: Mcdonnell Douglas Helicopter Company

Awarding Agency: Department of Defense

Start Date: 2003-09-24

End Date: 2011-06-30

Contract Duration: 2,836 days

Daily Burn Rate: $8.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200312!004460!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0085 !A!N! !N! !20030924!20051231!047800297!006265946!009256819!N!MCDONNELL DOUGLAS HELICOPTER C!5000 E MCDOWELL ROAD !MESA !AZ!85215!46000!013!04!MESA !MARICOPA !ARIZONA !+000003332360!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !1AIG!LONGBOW APACHE !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!U!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85215

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to MCDONNELL DOUGLAS HELICOPTER COMPANY for work described as: 200312!004460!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0085 !A!N! !N! !20030924!20051231!047800297!006265946!009256819!N!MCDONNELL DOUGLAS HELICOPTER C!5000 E MCDOWELL ROAD !MESA !AZ!85215!46000!013!04!MESA !MARIC… Key points: 1. Contract awarded for critical aircraft components, supporting aviation readiness. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long duration of contract (2003-2011) may indicate complex or evolving requirements. 4. Focus on aircraft manufacturing highlights a key defense sector.

Value Assessment

Rating: questionable

The contract value of $22.9M for aircraft components is difficult to assess without specific unit pricing or comparison data. The 'COST PLUS FIXED FEE' pricing structure can sometimes lead to higher costs if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, meaning full and open competition was not utilized. This limits price discovery and may result in higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this significant contract could lead to suboptimal pricing and reduced value for taxpayer funds.

Public Impact

Supports ongoing operations and maintenance of critical Apache helicopter systems. Ensures availability of specialized components for the U.S. Army's aviation fleet. Potential for increased costs due to sole-source award impacts overall defense budget.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Long contract duration

Positive Signals

Supports critical defense systems
Ensures component availability

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, a significant area of defense spending. Benchmarks for similar component contracts are not readily available, but the sole-source nature warrants scrutiny.

Small Business Impact

The awardee, McDonnell Douglas Helicopter Company, is a large business. There is no indication in the data that small businesses were involved as subcontractors or partners in this specific contract.

Oversight & Accountability

The sole-source nature of this award suggests a need for robust oversight to ensure fair pricing and prevent potential cost overruns. Accountability for the justification of the sole-source award is crucial.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition.
Cost-plus contract type may lead to higher costs.
Long contract duration increases risk of cost escalation.
Lack of transparency in justification for sole-source award.
Potential for reduced value for taxpayer funds due to limited competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to MCDONNELL DOUGLAS HELICOPTER COMPANY. 200312!004460!2100!AH23 !USA AVIATION AND MISSILE COMMAND!DAAH2303C0085 !A!N! !N! !20030924!20051231!047800297!006265946!009256819!N!MCDONNELL DOUGLAS HELICOPTER C!5000 E MCDOWELL ROAD !MESA !AZ!85215!46000!013!04!MESA !MARICOPA !ARIZONA !+000003332360!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !1AIG!LONGBOW APACHE !336411!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is MCDONNELL DOUGLAS HELICOPTER COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2003-09-24. End: 2011-06-30.

What was the justification for awarding this contract on a sole-source basis, and were alternative solutions explored?

The provided data indicates a sole-source award, which typically requires a strong justification, such as a unique capability or urgent need. Without further documentation, it's unclear if alternative suppliers or competitive bidding processes were considered. This lack of transparency can obscure potential cost savings and limit market competition.

How does the cost-plus-fixed-fee structure impact the overall cost-effectiveness of this contract, especially given the long duration?

Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, as the fee is a fixed percentage of those costs. For a long-duration contract like this, without stringent oversight and clear performance metrics, there's a risk of cost escalation. This structure requires diligent monitoring to ensure the government receives good value and the contractor remains efficient.

What is the long-term strategic value of securing these specific aircraft components through this contract, and are there plans for future competition?

The contract ensures the supply of essential components for the Longbow Apache, a critical asset for the U.S. Army. The long duration suggests a sustained need. However, the absence of competition raises concerns about future procurement strategies and whether opportunities for more cost-effective sourcing will be pursued.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE Boeing Company (UEI: 009256819)

Address: 5000 E MCDOWELL RD, MESA, AZ, 85215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline